Investors have never been more bullish about Europe

Investors have never been more bullish about Europe.
Reuters
Investors are more bullish than at any time on record about European stocks, as the market reacts to the sudden and surprising recovery underway.

Economic data has been surprisingly positive and growth forecasts have been hiked across the board, while the European Central Bank's quantative easing programme, announced early in January, was much larger than analysts had expected.

New figures out from Bank of America Merrill Lynch's latest global investor survey show that 60% of respondents are now overweight eurozone stocks, meaning they expect elevated returns:

All of that is good for stocks, and a higher share of investors are saying that the eurozone's profit outlook is the world's best than ever before:

BAML

A lot of people were initially sceptical about the early signs of a recovery in Europe, and there have certainly been enough false dawns in the past five years to make that reasonable — but investors now look pretty convinced that this is real.

There's a lot still wrong with Europe, but finally, things look like they're genuinely getting better.